Investors around the world are pushing stocks higher Thursday as the prospect of imminent U.S.-led military action against Syria appears to be receding.

Investors were feeling less panicked as the U.S. and its allies continued to talk about how to respond after concluding that Syria used chemical weapons against its own people.

There is a "reduced threat of imminent military intervention in Syria as discussions between world leaders and the UN security council continue and action [has been] delayed, thus boosting risk appetite," said Mike van Dulken, head of research at Accendo Markets in London.

U.S. stocks managed a modest rebound Wednesday, after posting a sharp drop Tuesday in reaction to strong talk of a military strike.